Betty v. Knapp

PLUMMER, J.

The plaintiff had judgment in an action brought to set aside a conveyance of certain property, made, executed and delivered by the defendants, E. W. Knapp and Ellen B. Crowder, to June Knapp, on the ground that said conveyance was made to defraud creditors. From this judgment the defendants appeal.

The record shows that on or about the thirty-first day of August, 1928, the plaintiff commenced an action in the Superior Court of Los Angeles County, numbered 260222, against the defendants, Ellen B. Crowder and E. W. Knapp, and on May 6, 1929, the plaintiff recovered judgment against said defendants for the principal sum of $3,000 and costs in the sum of $374.05; that several executions were thereafter issued on said judgment against the defendants, Ellen B. Crowder and E. W. Knapp; that the plaintiff was wholly unable to find any property upon which said executions could be levied, and the sheriff to whom said executions were delivered, returned every execution unsatisfied.

The record shows, and the court also found, that subsequent to the commencement of action numbered 260222, and prior to the entry of the judgment therein, but after the indebtedness on which said judgment was rendered had been incurred, the defendant, Ellen B. Crowder, for the purpose of defrauding the plaintiff and preventing him from collecting the said indebtedness, conveyed to the defendant, June Knapp, by a grant deed, substantially all of the real property owned by her and her son, E. W. Knapp, which stood in the name of the said Ellen B. Crowder.

The complaint also alleges, and the court likewise found, that the defendant, June Knapp, knew of the indebtedness of the defendants, Ellen B. Crowder and E. W. Knapp to the plaintiff herein, and that she received the conveyance just mentioned with the intent and purpose of defrauding the plaintiff, and preventing the plaintiff from collecting

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the indebtedness represented by the judgment obtained in action numbered 260222.

The court further found that the transfer referred to left the said defendants, Ellen B. Crowder and E. W. Knapp, insolvent; also, that the conveyance made by the said Ellen B. Crowder and E. W. Knapp was without consideration, and in contemplation of insolvency at the time of making said transfer; that after the conveyance so referred to there was an insufficient amount of property standing in the names of the defendants, or of either of them, to satisfy, either in whole or in part, the judgment entered in favor of the plaintiff in action numbered 260222. The court also found that the sureties given on an undertaking to stay judgment in action numbered 260222 were insolvent, and that proceedings taken against them had resulted in nothing being recovered. Judgment was accordingly entered, holding the conveyance made by the defendants, Ellen B. Crowder and E. W. Knapp, to the defendant, June Knapp, void, and therefore subject to the lien of the plaintiff’s judgment heretofore referred to.